Esquel Group: Building a Sustainable Partnership with Cotton Farmers in Xinjiang (A) Harvard Case Solution & Analysis

Esquel Group, a leading manufacturer of quality shirts, tried to negotiate long-term partnership with the often exploited farmers in Xinjiang (western China) to provide an excellent variety of cotton. In order to ensure a large supply of cotton in the special ethical and socially responsible manner, Esquel undertook a major initiative in 2002 to negotiate the establishment of the value of contracts between itself, the Xinjiang local municipal authorities, as well as cotton. Aware that the execution of contracts in China can be challenging, Esquel offer the poor in the region often suspicious farmers attractive advanced funding, guaranteed minimum prices, and other generous terms in exchange for agreeing to sell their crops exclusively Esquel. Event concludes with the harvest of cotton specialty is shaping up as a very good, and the demand for premium cotton, it seems stronger than ever. "Hide
by James K. Sebenius, Chen (Jason), Qian Source: Harvard Business School 9 pages. Publication Date: November 12, 2010. Prod. #: 911031-PDF-ENG

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Esquel Group: Building a Sustainable Partnership with Cotton Farmers in Xinjiang (A)

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